When you’re waiting on an inheritance, one of the biggest questions is how much of it you’ll actually receive. Probate can be a long process in California, and many heirs don’t realize that estate taxes and related costs can impact the final distribution. While California doesn’t impose its own inheritance tax, there are still important rules and federal taxes that can affect beneficiaries.
Understanding how estate taxes work—and how an inheritance advance from Approved Inheritance Cash can help while you wait—is key to planning ahead.
Does California Have an Inheritance Tax?
Here’s some good news: California does not have a state inheritance tax. That means beneficiaries in California don’t pay tax just for receiving money or property from an estate. However, that doesn’t mean the estate itself avoids taxation entirely.
Federal Estate Taxes
The federal government does impose an estate tax, but only on estates valued above a certain threshold. In 2025, the federal estate tax exemption is over $12 million per individual. This means the vast majority of estates in California will not owe federal estate tax.
For high-value estates, however, the estate may need to pay taxes before distributing assets to heirs. This can delay the probate process even further.
Other Taxes That May Apply
Even though there’s no inheritance tax in California, beneficiaries may still face:
- Capital Gains Taxes: If you sell inherited property or investments, you may owe capital gains tax on the profits.
- Income Taxes on Certain Assets: Retirement accounts (like IRAs or 401(k)s) may be subject to income tax when withdrawn.
- Property Taxes: Inherited real estate may come with ongoing property tax obligations.
How Taxes Affect Probate Timelines
Before assets can be distributed, the executor must ensure all taxes are paid. This can include filing tax returns, waiting for IRS clearance, and sometimes even selling estate property to cover the bill. Each of these steps can slow down the process, leaving beneficiaries waiting months or years.
How an Inheritance Advance Can Help
Even if estate taxes are being sorted out, you don’t have to put your life on hold. An inheritance advance allows you to access your funds now while the estate handles taxes and paperwork.
With Approved Inheritance Cash, you get:
- Fast Access to Your Share: Cash in days, not years.
- No Monthly Payments: Repayment happens only when probate is complete.
- No Credit Check: Approval is based on your inheritance, not your finances.
- Financial Flexibility: Cover bills, tuition, medical expenses, or even plan for your own tax obligations.
Example
Imagine you’re inheriting a family home worth $500,000. While you won’t owe state inheritance tax, the estate may need to pay final property taxes and file a federal return. These steps could delay distribution for a year or more. With an inheritance advance, you can access part of your share now—giving you financial peace of mind while the estate is finalized.
Final Thoughts
While California doesn’t have an inheritance tax, estates may still face federal estate taxes, capital gains, and property tax obligations. These factors can slow down probate and leave beneficiaries waiting longer than expected.
At Approved Inheritance Cash, we help you bridge the gap. If you’re a California beneficiary stuck waiting while taxes and probate are resolved, contact us today to access your inheritance sooner.
